IFC Invests in Activa to Support Increased Access to Insurance in West and Central Africa

Douala, Cameroon, July 25, 2013 - IFC,
a member of the World Bank Group, is investing $6 million in Activa, an
insurance group operating in Cameroon, Ghana, and other countries in the
region, to help increase access to insurance for farmers, smaller
businesses, and lower-income individuals.

IFC’s equity investment will help Activa
expand into new markets in West and Central Africa, where few are able
to access or afford insurance products because of weak distribution channels,
high transactions costs, lack of product innovation, and low consumer financial
literacy.

With IFC’s backing, Activa plans to offer
innovative products, such as weather risk insurance for farmers, micro-insurance
for lower income beneficiaries, and mobile insurance, where the insurance
product is distributed via network operators.

Yolande Duhem, IFC Director for West and
Central Africa, said, “A key focus of IFC’s financial services strategy
for sub-Saharan Africa is to support regional insurers who aim to achieve
mass market coverage and expand their operations in other countries. Insurance
is an essential social safety net in case of an accident or any other adverse
event affecting households or businesses.”

Richard Lowé, CEO of Activa Group said: “Our
ambition is to expand and diversify our successful business model. Through
our partnership with IFC, we are extremely well positioned to take advantage
of the many growth opportunities in the African markets with very low insurance
penetration through the development of products designed to cover low-income
population and small businesses and the use of innovative distribution
channels. This partnership will help us as well in our ambition to apply
modern, robust and effective governance and compliance rules.”

IFC is currently engaged in a World Bank Group-wide
effort to better understand the challenges of insurance in emerging markets
and to help local regulators and industry players overcome them.

About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.